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A company purchase a machine on 1st April, 2012 for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct 1,2014, the machine was sold for ₹ 25,000 Prepare machine account after charging depreciation @ 10% p.a. by diminishing balance method?
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Machine Account after Charging Depreciation
Depreciation Calculation:
- Original cost of the machine = ₹ 30,000
- Repair cost = ₹ 4,000
- Installation cost = ₹ 1,000
- Total cost = ₹ 35,000
- Depreciation rate = 10% p.a.
Yearly depreciation = Total cost * Depreciation rate
Yearly depreciation = ₹ 35,000 * 10% = ₹ 3,500

Machine Account
1. Initial Cost:
- Purchase cost: ₹ 30,000
- Repair cost: ₹ 4,000
- Installation cost: ₹ 1,000
- Total initial cost: ₹ 35,000
2. Depreciation for 2012-2013:
- Depreciation = ₹ 35,000 * 10% = ₹ 3,500
- Machine value at the end of the year:
₹ 35,000 - ₹ 3,500 = ₹ 31,500
3. Depreciation for 2013-2014:
- Depreciation = ₹ 31,500 * 10% = ₹ 3,150
- Machine value at the end of the year:
₹ 31,500 - ₹ 3,150 = ₹ 28,350
4. Depreciation for 2014-2015 (up to Oct 1):
- Depreciation = ₹ 28,350 * 10% = ₹ 2,835
- Machine value on Oct 1, 2014:
₹ 28,350 - ₹ 2,835 = ₹ 25,515
5. Sale of Machine:
- Machine sold for: ₹ 25,000
- Loss on sale: ₹ 25,515 - ₹ 25,000 = ₹ 515 loss
Therefore, the machine account after charging depreciation at 10% p.a. by diminishing balance method would show a loss of ₹ 515 on the sale of the machine.
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A company purchase a machine on 1st April, 2012 for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct 1,2014, the machine was sold for ₹ 25,000 Prepare machine account after charging depreciation @ 10% p.a. by diminishing balance method?
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A company purchase a machine on 1st April, 2012 for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct 1,2014, the machine was sold for ₹ 25,000 Prepare machine account after charging depreciation @ 10% p.a. by diminishing balance method? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A company purchase a machine on 1st April, 2012 for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct 1,2014, the machine was sold for ₹ 25,000 Prepare machine account after charging depreciation @ 10% p.a. by diminishing balance method? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company purchase a machine on 1st April, 2012 for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct 1,2014, the machine was sold for ₹ 25,000 Prepare machine account after charging depreciation @ 10% p.a. by diminishing balance method?.
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